Recently, a report by People’s Daily notes that according to data released by China’s customs authorities, in the first eight months of this year, China’s integrated circuit (IC) exports amounted to RMB 736.04 billion, an increase of 24.8%. IC exports have surpassed automotive exports (which totaled RMB 540.84 billion during the same period), making ICs a major category in China’s export products, according to the report.

The data suggests that China’s IC exports are gradually recovering from downward pressure and regaining momentum.

Looking at a longer time frame, the report suggests that China’s IC export value has grown more than 1.5 times over the past decade. In 2023, China’s IC export volume and value reached 2,678 billion units and RMB 956.77 billion, respectively, representing increases of 74.5% and 155.9% compared to 2014, when the figures were 1,535 billion units and RMB 956.77 billion.

From 2022 to 2023, the global chip industry experienced a downturn, with the market’s main focus shifting from “chip shortages” to “inventory reduction,” the report notes. According to a report by the Semiconductor Industry Association (SIA), global semiconductor sales in 2023 totaled USD 526.8 billion, a year-on-year decrease of 8.2%. Affected by this, China’s IC export growth rate dropped to 3.5% in 2022 and -5% in 2023, ending five consecutive years of double-digit growth.

However, since the beginning of 2024, the situation has started to improve, the report says. In August, China’s IC exports reached RMB 95.18 billion, a year-on-year increase of 18.2%. The export value has seen year-on-year growth for 10 consecutive months.

ICs are considered a typical cyclical industry, with cycles averaging every four to five years. Analysts cited by the report believe that the industry is currently emerging from the shadow of recession. Innovations in AI applications, such as ChatGPT, along with the trends of automotive electrification and intelligence, will continue to drive the stabilization and upward trajectory of the IC industry.

Global Unichip Corp. (GUC), a leading provider of advanced ASIC solutions, announced that its 3nm HBM3E Controller and PHY IP have been adopted by a major cloud service provider and several high-performance computing (HPC) companies. The cutting-edge ASIC is expected to tape out this year, featuring the latest 9.2Gbps HBM3E memory technology.

In the same announcement, GUC highlighted its active collaboration with HBM suppliers like Micron, stating it is developing HBM4 IP for next-generation AI ASICs.

GUC noted that its joint efforts with Micron have demonstrated the ability of GUC’s HBM3E IP to achieve 9.2Gbps with Micron’s HBM3E on both CoWoS-S and CoWoS-R technologies. Test chip results from GUC show successful PI and SI outcomes, with excellent eye margins across temperature and voltage variations at these speeds.

Moreover, when GUC’s HBM3E IP is integrated with Micron’s HBM3E timing parameters, it improves effective bus utilization, further boosting overall system performance.

“We are thrilled to see our HBM3E Controller and PHY IP being integrated in CSP and HPC ASICs.” said Aditya Raina, CMO of GUC. “This adoption underscores the robustness and advantages of our HBM3E solution, which is silicon-proven and validated across multiple advanced technologies and major vendors. We look forward to continuing our support for various applications, including AI, high-performance computing, networking, and automotive.”

“Memory is an integral part of AI servers and foundational to the performance and advancement of data center systems,” said Girish Cherussery, senior director of Micron’s AI Solutions Group. “Micron’s best-in-class memory speeds and energy efficiency greatly benefit the increasing demands of Generative AI workloads, such as large language models like ChatGPT, sustaining the pace of AI growth.”

(Photo credit: GUC)

MediaTek announced on its official Weibo account that its next-generation flagship chip will be unveiled on October 9.

According to TechNews, MediaTek’s upcoming next-generation chip is the annual flagship smartphone processor, the Dimensity 9400. Based on the expected release date, it will be unveiled ahead of competitor Qualcomm’s Snapdragon 8 Gen 4.

During a recent earnings call for Q2 2024, MediaTek CEO Rick Tsai confirmed that the eagerly anticipated Dimensity 9400 would debut in October. Following its release, the chip is expected to support most major language models on the market, with the company confident of achieving over 50% year-on-year revenue growth for its flagship products.

Market sources cited by TechNews reveal that the Dimensity 9400 will be the largest smartphone processor to date, with a chip area of approximately 150 mm². This increased size will accommodate more transistors, with the Dimensity 9400 expected to feature over 30 billion transistors, a 32% increase from the 22.7 billion in the Dimensity 9300.

Additionally, recent report indicate that the GPU in the Dimensity 9400 significantly outperformed Apple’s A18 Pro in the GFXBench Aztec 1440p test, even surpassing the PC-class M4 processor. Performance data shows that the Dimensity 9400 achieved a Vulkan frame rate of 134 fps in the GFX Aztec 1440p test, exceeding the A18 Pro by 86% and Qualcomm’s Snapdragon 8 Gen 4 by about 41%.

(Photo credit: MediaTek)

Nvidia has stopped taking orders for its H20 chips since August, according to Chinese media outlet CLS, citing distributors. While there has been no official notice, sources suggest distributors are “waiting on the latest updates”. One industry insider said Nvidia began accepting H20 chip orders in February, shipping them in April, with bulk shipments following in May. However, several distributors recently reported that they are no longer accepting H20 orders, though some still have stock available.

The report also quoted a distributor saying, “Large firms have mostly stockpiled, while smaller ones might still have some demand.” Orders are still being taken, but interest in the H20 chip is low due to its underwhelming performance and relatively high price, with some even describing it as a “chicken rib”—something of little value. Nvidia declined to comment on these claims.

According to Commercial Times, the U.S. had imposed export restrictions on chips to China, prompting Nvidia to develop three custom chips for the Chinese market based on its H100 series, with the H20 being the most powerful. The H20, built on the Hopper architecture, features 96GB of HBM3 and offers 4.0TB/s memory bandwidth. However, it has 41% fewer GPU cores and 28% lower performance than the H100.

Earlier, Sina Finance reported that Chinese firms, including ByteDance, have been stockpiling Nvidia chips, with ByteDance reportedly holding over 100,000 units. H20 orders for 2024 are expected to reach between 320,000 and 330,000 units, with 140,000 to 150,000 already delivered. Additionally, ByteDance plans to purchase more than 30,000 H100 chips from overseas, with potential follow-up orders for B200 and H200 chips.

(Photo credit: Nvidia)

Rumors are going around the market about Intel’s next move, as names of big techs, such as Qualcomm, have been brought up as potential buyers. On the other hand, U.S.-based asset management firm Apollo is also said to be showing interest in making an equity-like investment worth up to USD 5 billion in Intel.

However, are the rumors making sense? What would be the wisest decision for Intel to make? Here’s a roundup of the semiconductor giant’s core businesses, and a quick analysis of its next steps.

Intel Might Be Working on Restructuring and Adjustments Months ago

Before Intel’s formal announcement of delaying its German project for two years, the company has actually been carrying out plans for restructuring discreetly and adjusting its strategy in the meantime, which can date back to months ago.

This could be further echoed with Intel’s decision in June to sell a 49% equity interest related to the Fab 34 in Ireland to Apollo. Then, in July, after reporting a loss of USD 7 billion in its manufacturing business for 2023, Intel stated that its investment in France and Italy could not be realized for the time being, and suspended relevant investment plans for chip plants and R&D centers.

Five Core Businesses to Watch: x86 Unlikely to be Sold

Still, the struggling giant has five core businesses, which consists of the following segments: x86 CPUs for the consumer and data center markets, the networking business, Intel Foundry Services (IFS), FPGA unit Altera and Mobileye for automotive driver-assist systems.

Among these, x86 CPU remains the most profitable segment, which is also Intel’s core strength. As the revenue contribution, gross margin, and operating margin of the product line stay healthy, Intel is unlikely to sell the segment in the current scenario.

On the other hand, though Intel has denied the plan to divest a majority stake in Mobileye last week, the self-driving company, which listed on Nasdaq in 2022, would be one of the easiest target for Intel to handle. Industry insiders believe that companies like Japanese semiconductor firm Renesas, U.S. chip giant Qualcomm, Taiwan-based MediaTek, or those aiming to enter the automotive electronics sector could be potential buyers.

As for Altera’s FPGA unit, which also previously denied rumors of being for sale, industry experts suggest that AMD could still be a potential buyer. Acquiring Altera would allow the U.S. chip giant to expand its FPGA product lineup, effectively integrating it with its existing portfolio.

In addition, the networking division could also be sold as a standalone entity, which might be easier for Intel to execute.

What is Qualcomm Eyeing for?                       

The latest reports by The Wall Street Journal and Bloomberg indicate that Qualcomm has reached out to Intel regarding a potential acquisition offer, which would rank as one of the largest-ever technology mergers if the deal were to take place.

However, if Qualcomm were to pursue the x86 business or the entire Intel, it would be a significant financial burden for the U.S. chip maker. Moreover, as a chip design company, Qualcomm would lack the expertise to manage the IFS foundry, while the sector still suffered from significant losses.

Additionally, the deal would require scrutiny from antitrust authorities in various countries, which could be particularly challenging in China.

Therefore, a more feasible option for Qualcomm would be to acquire Mobileye, as the company is already involved in automotive ADAS and infotainment ICs. Acquiring the networking division would be another reasonable choice.

What would be the next page for Intel? To sum up, the 56-year-old semiconductor giant still has solid products, such as the x86 CPUs. Its main issue lies in the slightly deviated strategic direction and execution over the past few years, particularly as it positions itself to compete with TSMC in the most advanced nodes. By addressing these missteps and making proper arrangements afterwards, the company still holds significant value.

Read more

• [News] Qualcomm’s Potential Takeover of Intel Might Have Minimal Impact on TSMC, But Not MediaTek
• [News] Update on Potential Investors of Intel: Apollo Rumored in; Broadcom Temporarily out

(Photo credit: Intel)